Thursday, May 26, 2022
HomeBusinessEthiopia defers privatization of Ethio Telecom 

Ethiopia defers privatization of Ethio Telecom 

Prime Minister Abiy Ahmed made it clear that the partial privatization of Ethio Telecom will not be cancelled 

Ethio Telecom _ Privatization
Ethio Telecom head quarter in the capital Addis Ababa

borkena 

The Ethiopian government on Friday announced that it is deferring the partial privatisation of the giant state-owned telecommunication service provider in the country. 

It was the Ministry of Finance that announced the postponement of privatising the enterprise which economists like Kibour Ghenna consider as one of the national assets of the country. 

The government introduced the plan to privatise the enterprise with the claim to improve the efficiency of public enterprises and increase competitiveness by opening up access to capital and quality of service delivery. 

Prime Minister Abiy Ahmed’s government vowed to bring about economic prosperity with what it called a “Homegrown Economic Reform program.” 

A request for proposal for partial privatisation of Ethio Telecom was released in September 2021 as the country was facing a renewed military campaign by the Tigray People’s Liberation Front (TPLF) in the Afar and Amhara regions of Ethiopia – which was reversed by December 2021 although some parts of the regions mentioned above are still under the control of TPLF forces. 

A statement released by the Ministry of Finance indicated that the government already had a discussion with bidders who submitted proposals for the privatisation project. 

The Ethiopian government linked its decision to defer the partial privatisation to what it called  “recent developments and fast-moving macroeconomic changes both globally and from a country perspective”

The plan seems to be to improve the financial performance of Ethio  Telecom, which was weakened by the war with TPLF, and improve the overall macroeconomic situation in the country. 

However, it has expressed intent to finalise the privatisation process – which means that it will not be cancelled despite reservations/even oppositions from some economists.

Abiy Ahmed introduced an advisory council for privatisation soon after he became Prime Minister in 2018.   

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2 COMMENTS

  1. Aby is giving full authorizing to agents of Egypt and other foreigners to spy on citizens and further crush Ethiopians. Isayas Shabia had gained tremendous power since ousting Tplf. While Tplf is enemy of Ethiopia as well, Tplf and Shabia would have been check and balance for Ethiopia. Now, the monster has grown and taking every asset and history of relations Ethiopia has to Eritrea. The monster has grown now the house is cleaned friendly Tplf is installed, Olf taking control and Shabia in lead. Aby is grateful to Shabian Simon Bereket for his position so, he is in favor of all Ethiopia’s enemies who are mercenaries for Egypt and those attempting to recolonize Ethiopia.

  2. Ethiopia should learn from successful free market economies. Healthy competition with fair laws and a fair justice system is the best way for economic growth. The government does not have to enter into business. When they do, they kill off the competition, and the business is always far less efficient. Elon Musk says that a private business is 5x more efficient than a government-run business. So, the ethiopian government should sell all of their businesses. Make a free and open currency exchange market, and welcome the best and brightest as immigrants. And end all trade restrictions.

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